- The good news no doubt priced in prior to last night, the banking sector (KBE -0.7%), (KRE -0.8%) is underperforming after all 34 lenders passed the Fed's stress tests.
- Having the roughest session today is Morgan Stanley (MS -2%) after it came closet to failing on the supplementary leverage ratio in the Fed's severely adverse scenario. Macquarie is out with a note calling the decline a buying opportunity.
- Investors can now look forward to next week's release of the CCAR results, at which lenders' capital return plans will or won't be approved (or somewhere in between).
- U.S. Bancorp (USB -1.1%), Regions Financial (RF -1.3%), KeyCorp (KEY -1.6%), PNC Financial (PNC -1%), Fifth Third (FITB -1.8%)
- ETFs: XLF, FAS, FAZ, KRE, VFH, UYG, KBE, IYF, FNCL, BTO, IAT, IYG, KBWB, QABA, FXO, SEF, KBWR, RYF, FINU, XLFS, DPST, KRU, FINZ, RWW, WDRW, KRS, FAZZ, JHMF, FTXO, FNCF
- Now read: Firth Third Bancorp: 2018 Capital Return Should Brush 8%
Original article